Distributor Review of Dickson Electric System

OIG reviewed the Dickson Electric System (Dickson), a distributor for TVA power based in Dickson, Tennessee. The OIG's review found (1) customer classification issues that could impact the proper reporting of electric sales and/or nondiscrimination in providing power to members of the same rate class; (2) noncompliance with certain power contract provisions in following the Federal Energy Regulatory Commission chart of accounts; and (3) internal controls could be strengthened related to certification documentation for manufacturing customers, accuracy of contract demand entered in the billing system, and executed contracts for accounts with a contract demand value in the billing system. We also found TVA could enhance oversight of the distributors by clarifying that the Standard Industrial Classification (SIC) code to be used to determine eligibility for the manufacturing schedules should be the SIC code for the customer's facility that's located in the distributor's service area.TVA and Dickson agreed with the OIG's recommendations and have or are taking actions to correct the identified issues.